National Press Release

SACRAMENTO, Calif., Oct. 1 /PRNewswire/ -- The New Fuels Alliance released the following statement regarding the Tesoro lawsuit filed in California today against the California Air Resource Board.

"This a blatant attempt by Tesoro to try to use the regulatory and legal process to gain competitive advantage in the market place. Other oil companies are moving toward increased ethanol use to extend gasoline supply, lower cost, and even increase profits. Tesoro didn't see this market shift coming and is now trying to gum up the works based on a feigned and disingenuous concern about climate change and food prices."

The Alliance called on CARB to request immediate dismissal of the case. The facts are very clear.

1. The new regulation does not require any oil company to use ethanol, but it does allow oil companies to use more ethanol to extend supply as long as vehicle emissions do not increase.

2. Without ethanol, California would have less fuel available to the public at a higher price (1).

3. Tesoro makes completely misleading claims about ethanol's impact on climate change, with the clear objective to perpetuate myths about their primary competitor in the marketplace and whip up political and public support for a frivolous lawsuit.

4. The underlying cause of increasing food and commodity prices is the skyrocketing price of oil.

"This is another case of an oil company executing a political and legal strategy designed to maintain the status quo, which in this case means Californians getting gouged at the pump while oil companies rake in tens of billions of dollars in profit every quarter. It is well known that it is not in Tesoro's strategic interest to use ethanol because the company is long on octane and gasoline. It is cynical and wrong for them to prevent others from making good business decisions just because Tesoro is getting beat in the marketplace."

"Once again, the consumer stands to lose in this equation as one of the underlying causes of our economic downturn -- oil dependence -- gets lost in the debate."

(1) Oil companies are buying ethanol for about $2.50/gallon, receiving an

additional 50 cents/gallon tax credit, and blending the renewable

fuel with $3.00/gallon wholesale gasoline.

SOURCE New Fuels Alliance